Oil Search's PNG LNG project on track

Oil and gas producer Oil Search plans to deliver first sales of gas from its liquefied natural gas (LNG) project in Papua New Guinea in the second half of 2014.

The commissioning phase of the project has recently commenced, with gas being sent through a pipeline from Kutubu to the LNG plant near Port Moresby.

Managing director Peter Botten said the PNG LNG project was progressing well, and the operator had recently confirmed the estimated cost of the project remained unchanged from the 2012 estimate of $US19 billion ($A20.52 billion).

"The project remains on track to commence LNG sales in 2014, with first deliveries expected in the second half of the year," Mr Botten said.

Oil Search shares were down 4.5 cents, or 0.5 per cent, at $8.455 at 1216 AEST.